Reporter's Diary: Finland's Former PM: There is more for Asia and Europe to cooperate
Updated 20:16, 13-Dec-2019
Wei Lynn Tang
04:04

That's the thing about speaking to state leaders and company CEOs, former and current, alike: time is of the essence and I always wished I had more time to pick their brains.

My main takeaway from my almost 15-minute interview with Finland's former Prime Minister Esko Aho, which ranged across a variety of issues, was that he'd like to see a more rule-based global system implemented.

"It's in the interest of Europe, in the interest of China, and especially in the interest of small countries like Finland. Our fundamental interest is to promote a rule-based global system and I believe that it's good for all. It's real win-win," Aho said.

He was all straight talk when I asked him how to see the China-U.S. still ongoing trade disputes playing out. "To be honest, I understand in certain respect what Americans are saying. In Europe, we also have similar sentiments that now that China is a developed country, not the developing country it has been," he said.

"That's why it's very important that China will understand that rules and requirements are much higher than earlier. And maybe China did not understand completely and fully early enough that sentiment is changing. And that's one reason also we're now in conflict, which is very complicated to be solved."

And it's to this reason that Aho thinks it's necessary to "find solutions based on rules and common regulations."

03:31

Aho brought up the issue of intellectual property regulations, to which he said China, which wasn't that developed then, was on the receiving end -- until recently.

"But now China has interests to protect what's done in China. China is having more and more patents... It's China's interest that rules are there, and they will be protected."

And while Aho is of the view that China is moving toward the right direction, he said China should "take more and faster radical steps".

I asked him if he thinks compromises can be made in trade. He acknowledged it's difficult to make compromises in the middle of a crisis, but compromises are the only way to move on.

Aho: Sustainability is China's next biggest challenge

During Aho's speech on the Asia-Europe Cooperation Dialogue in Chongqing, he said China's policy of reform and opening-up in 1978 was "the most radical conceptual change he has seen during his lifetime".

"When you ask me why the Soviet Union system collapsed while the Chinese system was able to survive, I think the main reason is the Soviet neglected to understand what was happening and what would happen. So it's inevitable that the Soviet was collapsing," he explained.

"But China was able to make changes, especially Deng Xiaoping, who was able to understand what was the role of globalization and technological change."

Aho said the next big question is how the next generation of technologies, digital, and bio revolution to be utilized by companies and societies. "That is the biggest challenge for China as well. It's linked to sustainability because technology is needed to overcome environmental problems."

To this end, Aho believes there is much more for Asia and Europe to further cooperate. He said there needs to be investments in certain technologies, and that there needs to be concerted efforts globally.

"Like Finland is very good in forestry and bio economy, it's our contribution. China is very good in battery technology, or solar energy. In that way we get maximum out of those technological developments."

Aho pointed that China has plentiful resources, capacities and needs to be very good in 'verticals'.

"So space technology, AI, and many other sectors. China is one of the leading nations because of its science capacity, it has the resources to invest like the Americans and probably the EU as well."

Meanwhile, Aho said Finland is a small country, and hence its main focus should be in 'horizontalization', in "how to get the benefits of technology".

"And we are quite good in that, both in digital areas and especially in the bio sector. And I believe that cooperation between Finland and China should be based on this, so that both have assets. And when we're putting them together, I think we are able to get things to happen faster and also to get benefits to ordinary citizens and societies."

On aging population: "Every country needs a silver strategy"

Aho, who was  Finland's Prime Minister from 1991 to 1995, served as the President of the Finnish Innovation Fund Sitra and EVP at Nokia Corporation thereafter.

Aho is known for his push for what is known as a "silver economy", targeted at the purchasing potential of the older group of people. This comes as Finland has an aging population: reportedly those over 60 makes up 27 percent of its population.

"For the first, there is a famous saying by one American politician that there are known knowns and unknown knowns, known unknowns and unknown unknowns. I think sustainable challenge, environmental problems are 'known unknowns', so we know that they'll happen but we don't know when and how and what the impacts are going to be," he said.

"We've studied to understand them and we are investing [in] them and everyone is ready to commit that something has to been done. As far as aging is concerned, it's 'known knowns' as all the facts are on the table."

Aho cited other aging populations such as Japan, Europe, and even China.

"I think now we have normally seen aging as a problem, so it means higher pension costs and financial system risks. We have seen great need in health care systems and social care. But I think we have to be able to understand that it can be an asset or opportunity as well," he said.

"I'm 65, I'm retired but I'm not stopping to work because I'm in good health, I have no reason to stop working."

Aho said: "we have to get people working longer, living longer, living healthier and being productive for as long as possible. And we have to change the system in order to do that."

To this, Aho asserted, "Every single company, every single nation, needs a clear silver economy structure. It's like an environmental issue, we are saying everything must be green, well silver is the next green. And we need a silver strategy in order to handle this."